New payment option and profits increase announced by PayPoint

This week PayPoint.net, the online arm of PayPoint, introduced a new cash-based online payments service to allow retailers to reduce transactional risks for goods bought online from their stores. In addition PayPoint reported its profits increase along with trading results that came to meet the company’s expectations.

With the new service consumers receive a printable 19-digit reference number and barcode after 'buying' online, which they take to their nearest PayPoint terminal and pay cash for the service. As soon as the payment is complete the merchant is notified via a 'Get' or 'Post' call back request to its server. Such a system when no user accounts or bank details are required reduces the risk of fraud for the retailer.

According to the research of YouGov commissioned by PayPoint.net nearly 20% of consumers are turning to cash to purchase goods, rather than debit or credit cards, in order to better manage spending and reduce the risk of fraud. The company has plans to target about 2 million customers ineligible for credit or debit cards.

At the moment PayPoint has about 20,000 terminals located in UK stores used primarily for the payment of bills and services. The electronic payment services group reports that interim profits rose 6%. profit before tax for the 26 weeks ended 28 September climbed to £15.3 million from £14.5 million and rose 15% on a like for like basis on revenue up 5% to £109.3 million, or 9% like for like.